Commercial Banks

Investment Banks & Capital Markets

Export Credit Agencies

Multilateral Agencies

Equity Investors

Investment Banks & Capital Markets

Sovereign's underwriting activities in the capital markets arena are focused primarily on 144A bond issues and rated private placements by issuers based in sub-investment grade emerging markets. Sovereign's PRI support can often enable issuers that carry investment grade local currency ratings, to pierce the "sovereign ceiling" and obtain investment grade ratings on their bond issues by mitigating the cross-border currency transfer and convertibility risk.

This PRI enhancement to investment grade can result in significant cost savings to the issuer, as well as improving access to private capital and opening up opportunities with institutional investors. Being actively involved in the capital markets, Sovereign has worked with all the major rating agencies, and these agencies are familiar with Sovereign's policy form and financial strength ratings.

The PRI protection on these debt issues normally covers between 12 and 36 months of interest against the risks of currency inconvertibility and nontransfer. Sovereign's capital markets coverage is available for tenors up to 15 years and amounts of up to $125 million per transaction.

(Click here to see highlights of our transactions with Investment Banks & Capital Markets)